Harmonized Tariff Schedule (HTS)
The US system for classifying imported goods and determining applicable duty rates. Every imported product is assigned an HTS code that determines how much customs duty you pay.
The Harmonized Tariff Schedule of the United States (HTSUS or HTS) is the comprehensive classification system used by US Customs and Border Protection (CBP) to categorize imported goods and determine applicable duty rates. The HTS is based on the international Harmonized System (HS) developed by the World Customs Organization, with the first 6 digits being internationally standardized and the remaining digits being US-specific for tariff purposes.
HTS codes are typically 10 digits long. The structure works like this: Chapter (first 2 digits, e.g., 85 for electrical machinery), Heading (first 4 digits, e.g., 8518 for microphones and speakers), Subheading (first 6 digits, e.g., 8518.30 for headphones), and US-specific classification (digits 7-10, e.g., 8518.30.2000 for over-ear headphones). Each level of specificity can have different duty rates.
Correct HTS classification is critically important for several reasons. First, it directly determines your duty rate, which can range from 0% to 50%+ depending on the product and country of origin. Misclassification can result in overpaying duties (costing you money) or underpaying duties (resulting in penalties, fines, and potential fraud charges from CBP). Second, HTS classification determines whether your products are subject to additional tariffs like Section 301 (China tariffs) or antidumping duties. Work with a licensed customs broker to ensure correct classification.
Why it matters
Get a binding ruling from CBP on your HTS classification before your first import. This eliminates classification risk and gives you a definitive duty rate for your landed cost calculations.
Practical Tip
Get a binding ruling from CBP on your HTS classification before your first import. This eliminates classification risk and gives you a definitive duty rate for your landed cost calculations.
You'll hear this when…
When booking freight
“"Our freight forwarder asked which Harmonized Tariff Schedule (HTS) option we prefer for this LCL shipment."”
When tracking a shipment
“"The Harmonized Tariff Schedule (HTS) status shows the container departed the origin port on schedule."”
When managing delivery
“"We use Harmonized Tariff Schedule (HTS) for all inbound shipments to keep lead times predictable."”
Related Terms
Harmonized System Code
HSAn international product classification system using 6-digit codes standardized by the World Customs Organization. The first 6 digits are universal; countries add additional digits for national tariff and statistical purposes.
Customs Broker
A licensed professional authorized to clear goods through customs on behalf of importers. In the US, customs brokers must hold a federal license and are responsible for correctly classifying goods, calculating duties, and ensuring regulatory compliance.
Landed Cost
The total cost of a product delivered to your warehouse, including the product price, shipping, insurance, customs duties, customs broker fees, and drayage. The true cost you must use for pricing and margin calculations.
Duty Drawback
A refund of customs duties paid on imported goods that are subsequently exported, either in their original form or as part of a manufactured product. A powerful cost recovery tool for brands that sell internationally.
This term appears in every Bottlecap report.
See it in action — explore a full sample analysis.
Ready to put this knowledge to work?
Get a complete manufacturing feasibility report for your product idea — with cost breakdowns, supplier recommendations, and optimization tips.
Analyze my idea →